How can you ensure your material handling equipment lasts a long time?
In the world of warehouses and distribution centers, there’s a common saying that when equipment goes down, everything grinds to a halt. And they’re not kidding. The market for material handling equipment is expected to reach $178.2 billion globally in 2024, and it’s clear to see why this equipment is so important.
However, most facilities are losing money by not taking the proper care of this equipment. Whether you’re operating forklifts, conveyors, or you’ve purchased specialized custom bulk handling systems, proper maintenance of your equipment is essential to long lasting successful operations.
Did you know manufacturers deal with an average of 800 hours of unplanned equipment downtime per year?
That’s nearly 15 hours per week your staff are getting paid to stand around doing nothing while machines are down and out of action.
It’s no surprise that without proper maintenance, equipment failure is a major risk to your profit margins. But there is something you can do about it.
What you’ll learn:
- The Hidden Costs Destroying Your Budget
- Why Most Maintenance Programs Fail
- Preventive vs Predictive Maintenance: Which is Better?
- The 5-Step Maintenance System That Works
- How to Cut Downtime in Half
The Hidden Costs Destroying Your Budget
Equipment maintenance is much more than the cost of parts and labor for repairs. It’s the secondary costs that sink your budget. When a conveyor belt breaks, that’s not just the belt that is the issue, your whole operation is affected.
Idle workers, missed shipments, angry customers. All these things can quickly escalate into massive losses for your business.
Here’s what you need to know: Unplanned downtime costs a staggering average of $260,000 per hour. Costs have increased by 60% since 2014.
However, it doesn’t stop there.
Equipment failure has been found to account for 42% of all unplanned downtime costs. Whether you operate forklifts, conveyors, or any automated machinery. Equipment is one of the most expensive areas of your operation if it’s not being maintained properly.
And that is a direct drain on your profits.
Why Most Maintenance Programs Fail
Equipment being used to death and not taken care of properly. A shocking 57% of manufacturing businesses still use a run-to-failure maintenance policy. You literally wait for things to break and then you repair them.
It’s like never changing the oil in your car and then being surprised when the engine seizes up.
This, of course, is a recipe for more downtime rather than less. Sudden emergency repairs, rush shipping for parts, whole days of production out of schedule. It’s a nightmare.
Preventive vs Predictive Maintenance: Which is Better?
Here’s the interesting bit…
The vast majority of maintenance experts (80% according to polls) would have you believe that preventive maintenance is best. But they are missing a key point. Predictive maintenance can help you achieve even greater success.
The difference is vast:
- Preventive maintenance is scheduled. Replace filters every 30 days, inspect belts every week, lubricate bearings monthly.
- Predictive maintenance uses data to tell you what needs attention and when.
Businesses who use predictive maintenance show spectacular results:
- 91% decrease in repair time and unscheduled downtime
- 30-40% savings in maintenance costs
- Up to 70% fewer equipment failures
Impressive, right? But there is something else to consider.
You don’t have to pick one method over the other. The most successful maintenance programs use a hybrid approach with both preventive and predictive maintenance.
The 5-Step Maintenance System That Actually Works
If you’re ready to take your maintenance program to the next level, here is the method used to transform maintenance in every industry:
Step 1: Get Your Equipment Inventory in Order
You cannot maintain what you cannot track. The first step in any maintenance program is to start with a complete equipment inventory that covers:
- Model numbers and serial numbers
- Installation dates
- Maintenance history
- Critical spare parts requirements
This initial stage is very important. Without this, you’re flying blind.
Step 2: Create Equipment Specific Maintenance Schedules
Different types of equipment require different maintenance. Your specialist handling equipment needs a different approach from your regular conveyors.
Design specific schedules based on:
- Manufacturer’s recommendations
- Operating hours and cycles
- Environmental conditions
- Loading requirements
The key is to be very specific. “Inspect the conveyor belt” is not a maintenance task. “Inspect the conveyor belt for 3mm wear, check alignment, verify tension, and lubricate bearings” is a maintenance task.
Step 3: Set Up Condition Based Monitoring
Here is where the power of predictive maintenance comes in. Install sensors that monitor in real-time:
- Vibration
- Temperature
- Oil analysis
- Electrical current draw
CMMS (Computerized Maintenance Management Systems) are making this increasingly easy for businesses to do. 65% of organizations are using CMMS software today to track and manage maintenance operations while optimizing costs.
Step 4: Train Your Team Correctly
They focus too much on the equipment and not enough on the people who operate it. Your maintenance team must be properly trained on:
- Equipment specific procedures
- Safety protocols
- Data collection and analysis
- Emergency response procedures
Human error is the cause of more unplanned downtime in manufacturing than any other cause. So ensuring your staff are properly trained will eliminate a lot of issues.
Step 5: Track and Analyze Performance
Measurement is key to any program. Track these essential metrics:
- Mean Time Between Failures (MTBF)
- Mean Time To Repair (MTTR)
- Overall Equipment Effectiveness (OEE)
- Maintenance costs as a percentage of replacement value
You can then use this data to continuously refine and improve your maintenance program.
How Technology is Shifting the Landscape
Maintenance as a whole is being rapidly transformed by new technology. Industrial IoT is expected to generate $800 billion of economic value by 2024.
Smart sensors, connectivity, and analytics are making it easier than ever to predict and prevent equipment failures.
But here’s the cool part…
Artificial intelligence and advanced diagnostics can now predict some types of failure up to four weeks in advance. Some companies are reporting up to 50% reductions in downtime through this.
The ROI of Effective Maintenance
Let’s talk money…
Businesses that have effective maintenance programs in place have been seen to:
- 12-18% cost savings compared to reactive maintenance
- $5 return for every $1 spent on preventive maintenance
- 10-50% increase in equipment lifespan
- Significant reduction in safety incidents
The math is easy. Good maintenance pays for itself.
Common Mistakes to Avoid
Let’s have a look at what trips up most facilities. Here are some of the most common errors:
Over-maintenance. Yes, that’s a thing. Too much maintenance can cause more issues than it fixes.
Ignoring manufacturer’s instructions. Your maintenance schedules have been put together by experts for a reason.
Only focusing on critical equipment. Failures of even non-critical equipment can take your whole operation offline.
Inventory mismanagement. Not having the correct parts when needed is a major time and money sink.
Wrapping It Up
Good maintenance is not brain surgery, but it does take care and a proper process. The market for material handling equipment is booming because this equipment is so valuable to operations. But equipment is only as good as the maintenance program it has in place.
Focus on the basics first: track your equipment, make maintenance schedules, train your team. Then work in predictive technologies as your program grows.
Maintenance typically represents 20-50% of your operating budget, and making sure that budget is used effectively can be the difference between profit and loss.
In the end, it all comes down to this. Good maintenance practices aren’t just about keeping breakdowns at bay, they’re about building competitive advantage that delivers real results. Your equipment will last longer, your operation will run more smoothly, and your bottom line will thank you for it.
